Lindblad Expeditions today reported second quarter 2017 earnings before market release. Tour Revenues increased 3% to $55.6 million but the company reported a net loss of $2.6 million as compared with a net loss of $4.5 million in 2016 Adjusted EBITDA increased 1% to $5.3 million. 

Sven-Olof Lindblad, President and Chief Executive Officer, said “The significant operating momentum we generated over the last nine months has continued with bookings for future travel up nearly 40% in 2017 versus the same period a year ago.  The demand for high quality, immersive expedition travel continues to expand and we are uniquely positioned to capitalize on this growth given our ongoing fleet expansion and our proven track record of providing authentic and differentiated expedition itineraries.  We just launched our first new-build vessel, the National Geographic Quest, last week and I am extremely excited for our guests to experience all this ship has to offer.  While the delay in delivery will impact contributions in 2017, the increased capacity from this launch, as well as the National Geographic Venture in 2018 and a new blue water vessel in 2019, is expected to generate significant returns in the years ahead.”    

Second quarter tour revenues of $55.6 million increased $1.7 million, or 3%, as compared to 2016.  The increase was primarily due to $2.6 million of additional contributions from Natural Habitat, which was acquired in May of 2016, partially offset by a $0.9 million decrease in Lindblad segment revenues. 

Lindblad segment revenues of $47.2 million declined 2% compared to 2016 due to a $1.9 million decrease in ticket revenues driven by lower Occupancy, partially offset by a $0.9 million increase in other tour revenues.   Occupancy decreased to 85% from 92% a year ago primarily due to lower bookings during 2016.  

Available Guest Nights increased by 5% as compared with the second quarter a year ago, primarily due to fewer drydock days, most notably on the National Geographic Explorer and National Geographic Orion.  Lindblad segment Net Yield of $941 decreased 6% compared with the second quarter a year ago as increased pricing was more than offset by the decline in Occupancy. 

Net loss for the second quarter was $2.6 million, $0.06 per diluted share, as compared with net loss of $4.5 million, $0.10 per diluted share, in the second quarter of 2016.The $1.9 million improvement primarily reflects lower depreciation and amortization, primarily due to the accelerated depreciation of the National Geographic Endeavour a year ago, and foreign currency gains in the current year due to the fluctuation in exchange rates.

The second quarter of 2017 also includes $0.9 million of additional stock based compensation expense primarily related to grants under the 2016 CEO Share Allocation Plan, which provides our CEO the ability to transfer shares from his existing holdings in the Company to eligible employees.